Buying a home in Mexico: what it really costs

Can foreigners buy?
Yes, but in the Restricted Zone (within 50 km of the coast or 100 km of borders, which covers Tulum and Playa del Carmen) only through a fideicomiso bank trust or a Mexican company; direct ownership elsewhere.
Costs on top of the price
3.5-8% · Acquisition tax 2-5% + notary 0.5-1% + legal 1-1.5% (GPG 3.5-7.5%), plus 0.5-1.5% for fideicomiso/permit setup; TheLatinvestor budgets 5-8%.
Yearly property tax
Municipal predial, set locally on cadastral value; usually small, often less than HOA fees.
Tax on rental income
Non-residents: 25% ISR withholding on gross rent; plus 16% IVA on short-term stays (Airbnb remits on its bookings).
What holiday rentals earn
No sourced STR gross yield. AirDNA (early 2026, via Virestia): Tulum average occupancy 44%, 8,000+ listings, bottom 80% of condos earn US$13-18k/yr at 31-44% occupancy. TheLatinvestor: Tulum ADR US$125, down 23% YoY.
Long-term rent yield
4.6-6.1 (GPG Q2 2026: Merida 6.08, Cancun 4.60, national 5.79)% gross
Holiday-rental rules
Quintana Roo: mandatory RETUR-Q registration (since Aug 2025, renewed annually) plus a state operating licence and RFC tax ID; 6% lodging tax; fines up to MXN 100,000.

Sources